Europe faces price surge as Chinese automaker Nio struggles
The CEO of the Chinese brand Nio claims that the prices of models offered in Europe will need to approach the level of Porsche. He attributes this situation to higher tariffs imposed by the EU on Chinese electric cars.
Import duties on Nio cars were increased in November from the previous 10 percent to as much as 31 percent. Nio's CEO, William Li, asserts that this will impact prices in Europe.
Li explained at a recent conference that, because of the tariff in Europe, the selling price will align closely with that of a Porsche, significantly narrowing the market.
The situation is further complicated by the fact that Nio's sales in Europe are declining even without the price increases. From January to October 2024, the brand sold 1,513 vehicles on the continent. This is 27 percent less than in the corresponding period last year.
The biggest decline, as much as 72 percent, was observed in Germany after the local government decided to end the subsidy program for purchasing electric cars. Nio sees an opportunity to improve the situation with its cheaper sub-brands, Onvo and Firefly, which are soon to debut in Europe.
Their cars are expected to be noticeably cheaper than Nio's standard products. The most popular Nio model in Europe, the SUV EL6, currently starts at a price of $69,300. This is before the price increases are announced by the CEO.
